Activity-based costing methodology that identifies activities and assigns costs to each activity tracing resource consumtion and costing outputs. Banana Farm study case

1. Members:
• Cabezas Doménica
• Conforme Johanna
• Macias Angélica
• Mantilla Lissette
• Salcan Diana
• Tutorial grade: 10
Lecturer: Max Galarza, Msc.
TUTORIAL WORK: ACTIVITY – BASED COSTING
(ABC)

2. WHAT IS ACTIVITY-BASED COSTING?
Is a costing methodology that identifies activities in an organization
and assigns the cost of each activity with resources to all products
and services according to the actual consumption by each.
This model assigns more indirect costs (overhead) into direct
costs compared to conventional costing.
ABC as an approach to the costing and monitoring of activities
which involves tracing resource consumption and costing final
outputs.

3. HOW ABC SYSTEM IMPROVES COSTING PROCESS
It expands the number of
cost pools that can be
used to assemble
overhead costs. Instead
of accumulating all costs
in one companywide
pool, it pools costs by
activity.
It also creates new bases
for assigning overhead
costs to items such that
costs are allocated on the
basis of the activities that
generate costs instead of
on volume measures
such as machine hours or
direct labor costs.
ABC system alters the
nature of several indirect
costs, making costs
previously considered
indirect such
as depreciation,
inspection or power are
traced to certain
activities.

4. HOW DOES IT WORK?
ACCUMULATES INDIRECT
COSTS FOR EACH OF
THE ACTIVITIES IN AN
ORGANIZATION
ASSIGN THE COSTS OF
THESE ACTIVITIES TO
THE PRODUCTS OR
SERVICES
ALLOWS TO ESTABLISH YOUR
COSTS WITH MORE PRECISION
TO IMPROVE DECISION MAKING

5. OBJECTIVES
MANAGE COMPLETELY THE COMPANY, KNOWING THE
ACTIVITIES THAT INTERVENE WITHIN;
THE MAKING
SALE OF PRODUCTS.
AND THE CONSUMPTION OF RESOURCES, AS THE COSTS ARE
INCORPORATED TO SUCH PRODUCTS.

8. GREEN FORCE
MISION
EXPORTGRID S.A. is a fruit
exporting company whose main
objective is to provide high quality
products to foreign countries and
always searching to accomplish our
costumers’ requirements and
needs.

9. VISION
• As an Exporting company
• Our objective is to introduce
• The brand “EXPORTGRID” on international markets
• And always provide them with the best fruits to our customers.
• Our goal is to expand into different markets around the world.
• Make known Ecuadorian product quality in other countries.

10. OBJECTIVES
Sustainable
quality.
Our commitment
with the
environment is to
maintain the
natural wealth of
our farms.
Establish long-
term
relationships with
our potential
customers, and
become strategic
partners.
Working with
initiative and
giving good
quality in our
products and
services

11. NEGOTATION TERMS
NEGOTATION
TERMS
THAT WE
OFFER TO
OUR
CUSTOMERS
CFR
FOB
CIF

12. EXPORTGRID

13. LOADING QUALITY PROCESS
1.- Establish
quantity to be
loaded
2.- Farm
Selection.
3.- Shipping line
Selection
4.- Container
Coordination
5.- Container
Verification
(Clean container,
good conditions)
6.-Container
Dispatch
7.- Container
reception in our
farm
8.- Loading Order
9.- Loading
inspections
process. (Quality,
loading and temp)
10.- Tracking
trucks through
gps
11.- Container
port reception
12.- Container
reception at
destiny

14. BRAND BOX DESIGN

15. OUR FARMS - PRODUCT DETAILS:
TCI rating almond, white consistent.

16. CLUSTER PROCESS
WASHING CLUSTER,
SPRAYING PROCESS
PRE COCHINEAL
FRUIT OF 9 TO 12
WEEKS

17. PACKING
PROTECTING
COVER WITH POLIPACK
FINAL PACKING

18. CONSOLIDATION IN FIELD
SEALS AND SATELLITE
TRACKING
Thermographs FILTER
FRUIT QUALITY verifying TCI

19. BIBLIOGRAPHY
 https://www.slideshare.net/hiansi/sistema-de-costeo-abc
 https://en.wikipedia.org/wiki/Activity-based_costing
 https://www.investopedia.com/terms/a/abc.asp
 file:///C:/Users/ferna/Downloads/101%20IMPTO%20RTA%202016%20EXPORTGRID.pdf